IB HL and SL Economics Glossary

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There are currently 15 names in this directory beginning with the letter M.

A market is where buyers and sellers come together to establish an equilibrium price and quantity for a good or service.

Monopoly is a market structure whereby there is only one firm in the industry

Managed float
Managed float implies periodic intervention by a Central Bank in order to influence the exchange rate

Marginal revenue
Marginal revenue is the extra revenue gained from selling an additional unit of a good or service

Market failure
Market failure is the failure of markets to produce at the socially efficient level of output

Maximum price
A maximum price is also known as a price ceiling. It is a price set by the government below the equilibrium price.

Merit goods
Merit goods are goods or services with strong positive externalities] that would be under-provided by the market and so under-consumed.

Micro - credit
Micro-credit A loan that allows poor people to set up a small-scale business, is loaned to borrowers who do not have security/collateral, and contributes to the empowerment of women

Millennium Development Goals (MDGs)
Millennium Development Goals (MDGs) include eradicating extreme poverty and hunger, achieving universal primary education, promoting gender equality and empower women, reducing child mortality,improving maternal health, combating HIV/AIDS, malaria and other diseases, ensuring environmental sustainability, and developing a global partnership for development.

Minimum price
Minimum price or price floor. It is a price set by the government above the market price. It is set to protect producers supplying essential goods from low prices

Monetary policy
Monetary policy is a demand-side policy with the Central Bank using changes in the money supply or interest rates to affect AD

Monetary union
Monetary union is a common market with a common currency, common central bank, and common interest rates (monetary policy)

Monopolistic competition
Monopolistic competition is a market when there are many buyers and sellers, producing differentiated products, with no barriers to entry.

Multinational corporations (MNCs)
Multinational corporations (MNCs) are companies that have productive units in more than one country. Reasons they might invest in LDCs include: gaining access to new markets, cutting costs by avoiding the need to comply with legislation which exists in the domestic economy, gaining access to resources, cheaper labour and raw materials, avoiding import duties by producing in the target market.

Multiplier (HL) is the ratio of the induced change in national income to the increase in the level of injections and it is equal to the reciprocal of the mps + mpt + mpm.
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